Certain drivers in the fields of sustainability, business models, and product design are making the intersection between these three fields increasingly relevant. At this intersection is the opportunity to understand the relationships that exist between product design and business models to help decision makers develop more sustainable solutions.
The methodology of this research uses a complex systems approach and is grounded in a pragmatist paradigm. To answer the question “In the context of sustainability, in what way are business models and product design related?”, this research has carefully analysed three cases: Better Place, a US based company that has developed a charging infrastructure for electric cars; Interface Inc., a global commercial carpet tile manufacturer based in Atlanta, Georgia; and Metacycle, a company concept developed by a team of design researchers in Montréal, Québec. Each case is analysed by correlating aspects of product design to elements of the business model and assessing how these relationships affect the sustainability of the company.
The results show that product design, business models, and sustainability are inextricably connected. The results can be summarized in six key insights: there are universally applicable relationships; discontinuous design innovation can play a vital role in sustainability; sustainability is an emergent quality of a business model; key partnerships support systems level integration; a service revenue model has significant benefits and limitations; design innovation can help drive the shift to renewable energy. Conducting business model innovation and product innovation simultaneously can have large payouts in the form of creating new value, uncovering opportunities, and increasing efficiencies many fold, however the risks and costs of such a process are often very high.
Applying the methodology and lessons of this research to one’s own organization could help to uncover new opportunities for innovation and help create more sustainable solutions. This research, by helping to understand and define how these areas are inextricably related and interdependent, will hopefully inspire further research on the subject and help others to use the intersection between product design and business model innovation to solve complex problems, be they social, environmental or otherwise.